NEWPORT BEACH : Proposed Corona del Mar Business Improvement Zone Stalls

A snag in a proposed Corona del Mar business improvement district--a merchant-driven special tax zone for promotion--has put its formation on hold for at least a month, officials said.

Meanwhile, Balboa Island merchants won approval Thursday from the City Council to form an improvement district that will raise $23,000 to pay for promotions and beautification of Marine Avenue shops.

Under state law, such business improvement districts must be approved by a majority of merchants, and the funds from self-imposed taxes are collected by a City Council-appointed agency.

The levy from the Marine Avenue businesses will be collected by the Balboa Island Business Assn. and will equal twice the amount of each merchant’s business license. Independent contractors, such as hairdressers, are excluded from the assessment.

The idea of a district in Corona del Mar has not won over a sufficient number of merchants, Councilman Dennis D. O’Neil said. Some merchants believe the Chamber of Commerce should not be the body to collect the assessment money, he said.

Consequently, Chamber of Commerce officials asked for more time to form a separate entity to work with merchants on the proposed district, which is roughly bordered by East Coast Highway from Hazel Street to Avocado Street. O’Neil expects a proposal to reach the City Council by Nov. 27.